Cape Town -based empowerment company Grand Parade Investments (GPI) has officially got its second tilt at the fast food and beverages industry underway with the launch of Dunkin’ Donuts. GPI opened its first Dunkin’ Donuts store – specialising in coffee and baked good brands – in Goodwood last month. The move comes not long after Taste Holdings launched the Starbucks coffee shop brand in South Africa. Starbucks has so far restricted its roll-out to three stores in Gauteng, so it remains to be seen if Dunkin’ Donuts will enjoy ‘first mover’ advantage in the Western Cape.

As was seen with GPI’s initial openings of Burger King, locals queued outside the restaurant.

The master franchise agreement between Dunkin’ Brands and GPI males provision for the roll-out of more than 250 Dunkin’ Donuts restaurants and more than 70 Baskin-Robbins (ice cream) shops in South Africa over the next few years.

GPI is in the fortunate position of being able to call on the strong dividend flows from its gaming investments – which include the GrandWest casino – to underpin the development cost of rolling out Dunkin’ Donuts and Baskin-Robbins. The Burger King chain – now over 70 stores strong – also looks set to reach break-even point in terms of generating operational cash flows.

GPI chairman Hassen Adams reckoned that diversifying the local quick service restaurant (QSR) industry with premium brands that resonate with South Africans remained a focus for the Group.

“Dunkin’ Brands and GPI have shared values, and are committed to maintaining the product and brand excellence Dunkin’ Donuts is known for in other markets around the world.”

Alan Keet, CEO of GPI subsidiary Grand Foods, said that the growth in the emerging middle class, the quest for convenience and a rising coffee market meant a “welcoming environment” for Dunkin’ Donuts. “The brand offers convenience for South Africans with a thirst for high-quality coffee and espresso beverages. We’re identifying locations with high footfall and easy access where our guests can easily and quickly grab their favourites or relax and have a coffee with friends.”

CBN looks forward to the time when Starbucks enters the Western Cape markets and Dunkin Donuts advances on prime locations in Gauteng. Consumers and coffee lovers will surely be the winners in this competitive roast-off…